战略分析工具-分析方法-BDP英文版.ppt

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1、战略分析工具战略分析工具-分析方分析方法法-BDP英文版英文版BDPAgenda The Best Demonstrated Practices(BDP)ConceptApplicationsBDP StepsClient ExampleKey TakeawaysBDPAgenda The Best Demonstrated Practices(BDP)ConceptApplicationsBDP StepsClient ExampleKey TakeawaysBDPDescription*Whereas an RCP always deals with costs,a BDP could d

2、eal with costs or revenuesBDP is used to identify the best practices-those leading to the most revenue at the least cost-inside of or outside of a company.BDP-practices leading to the most revenue at the least cost*InternalExternalBetween organizationsHistoricalCompetitorsCompanies in different indu

3、stries来自来自中国最大的资料库下载中国最大的资料库下载BDPInternal vs.External Internal BDPs are more straightforward to conduct than are external BDPs,but they tend to lead to less dramatic,though often significant,change.Gathering data:Degree of change:BDPInternalExternalBetween organizationsHistoricalCompetitorsCompanies

4、 in different industriesStraightforwardContinuous improvementDifficultDramatic change来自来自中国最大的资料库下载中国最大的资料库下载BDPPossible Reasons for Better Performance More consolidated supply(VMRs)Lower cost raw materialsHigher quality raw materialsMore parts outsourcedMore parts made in lower-cost countriesProduc

5、tsSimpler productsFewer product variationsPlantsFewer,more highly-focused plantsMore efficient production process(longer runs,less waste)Better equipmentBetter quality controlLaborLonger-term contractsBetter structured incentivesBetter supervisor-to-labor ratioFollowing is a list of possible reasons

6、 some companies perform better than others:PurchasingManufacturingDistributionSellingBetter delivery method(truck vs.train vs.airplane)More(or less)frequent deliveriesLarger(or smaller)delivery sizesBetter trained salesforceLarger salesforceBetter organized salesforce(by region,by product,by industr

7、y)Better structured incentivesBDPBDP in Theory In theory,by applying BDP practices,you could create a BDP company.PurchasingManu-facturingDistributionSellingCorporatePurchasingManu-facturingDistributionSellingCorporatePurchasingManu-facturingDistributionSellingCorporateClientCompetitor ACompetitor B

8、BDP CompanyNon-BDPBDPBDPBDP in Practice In practice,BDP analysis is used only in areas of the company where it can have a significant impact.Manufacturing BDPSalesforce BDP Non-BDPBDPSituation:Before BDP:After BDP:CorporatePurchasingManufacturing DistributionSelling CorporatePurchasingManufacturing

9、DistributionSellingManufacturing costs are a significant portion of total costs,and the client is far from BDP in manufacturing.Revenue per sales representative is a major driver of profitability,and the clients sales representatives are far from BDP in revenue per representative.Corporate Corporate

10、Actions:Purchase new equipmentRearrange equipment to improve production flowRecycle wasteDecrease supervisor to labor ratioIncrease amount of trainingReorganize salesforce by industryRestructure incentives to encourage cross-sellingBDPReasons for Using BDP Because BDP is simple,pragmatic,and positiv

11、e(it focuses on what the client does best),it helps us achieve results.BDP helps us achieve resultsSimplePragmaticPositiveSimple methodologyEasy to explain to clientStraightforward to implementEasy to measure resultsFocuses on existing businessFocuses on most leveraged areasAllows for quantification

12、 of potential improvementLeads to concrete actionsBuilds morale at the client by focusing on what client does bestProvides a framework for continuous learningBDPAgenda The Best Demonstrated Practices(BDP)ConceptApplicationsBDP StepsClient ExampleKey Takeaways来自来自中国最大的资料库下载中国最大的资料库下载BDPApplications A

13、 large European paperboard manufacturer operated seven plants throughout Europe.A Bain team analyzed unit costs at each plant and identified a number of best practices worth$20MM or 40%of total operating expenses.A Spanish steel producers margins were coming under pressure from falling trade barrier

14、s.The company asked Bain to conduct an analysis of the technology and practices of its global competitors.The BDP resulted in dramatic cuts in labor costs and a reduction in the cost per kilogram of steel of 20%.The CEO of an Italian supermarket chain demanded cost cuts his management team could not

15、 deliver.A Bain BDP revealed 10-15%productivity gaps between departments in the chains 200 stores.The full scale BDP led to an average cost improvement of 10%per store.Bain has used BDP in hundreds of cases and in dozens of industries.Some examples of our work include:BDPAgenda The Best Demonstrated

16、 Practices(BDP)ConceptApplicationsBDP StepsClient ExampleKey TakeawaysBDPBDP Steps Process StepKey Success FactorsSelect comparableorganizations for BDPDisaggregate organizationsinto major processesConstruct first-cut BDPConstruct adjusted BDPQuantify impact“Peel the Onion”inleveraged areasDevelop a

17、n action planImplementOrganizations should produce similar products/services under similar operating conditionsLay out major(3-5)processesGather dataIdentify best practice organization for each processAdjust data for uncontrollable elements(e.g.,labor rates,product mix)to ensure an“apples-to-apples”

18、comparisonCalculate potential impact(revenue increase or cost savings)by unit and by processFocus on organizations and processes with the most potentialDetermine drivers of differences at a more disaggregated levelSet a BDP targetEstablish a detailed scheduleAssign responsibilitiesObtain commitment

19、at all levels of the organizationCommunicate goals,deadlines and responsibilitiesCelebrate successes along the wayDoing a BDP analysis involves several steps.BDPAgenda The Best Demonstrated Practices(BDP)ConceptApplicationsBDP StepsClient ExampleKey TakeawaysBDPSticky Tape*-Background*Disguised clie

20、nt caseSituation:The client,Sticky Tape,is the the market leader in the adhesive tape industry and has four plants making duct tape and masking tape.There is significant cost sharing between these two productsComplication:The CEO is concerned that Sticky Tapes cost advantage might be eroding and he

21、is eager to find ways to cut manufacturing costsQuestion:How can Sticky Tape identify the most leveraged areas for cost reduction,the cost reduction potential,and ways to implement the cost reduction opportunities?Bain used BDP to help our client,Sticky Tape,reduce its manufacturing costs.BDPBDP Ste

22、ps Process StepKey Success FactorsSelect comparable organizations for BDPDisaggregate organizations into major processesConstruct first-cut BDPConstruct adjusted BDPQuantify impact“Peel the Onion”in leveraged areasDevelop an action planImplementOrganizations should produce similar products/services

23、under similar operating conditionsBDPSticky Tape-Comparable OrganizationsAcross the most important screening criteria,Sticky Tapes four plants and its competitors plants are roughly comparable.Comparable organizationsSimilar products,product mixes,and volumesSimilar customer requirements and busines

24、s practicesSimilar technologySimilar product designsSimilar accounting practicesBDPBDP Steps Process StepKey Success FactorsSelect comparable organizations for BDPDisaggregate organizations into major processesConstruct first-cut BDPConstruct adjusted BDPQuantify impact“Peel the Onion”in leveraged a

25、reasDevelop an action planImplementLay out major(3-5)processesBDPSticky Tape-Major Processes Making tape involves three major processes:RewindingSlittingPackagingBase material runs from a core rollAdhesive material is added and curedBase material plus adhesive is fed onto a master rollMaster roll is

26、 slit into final widthsVarious sized units are packagedBDPBDP Steps Process StepKey Success FactorsSelect comparable organizations for BDPDisaggregate organizations into major processesConstruct first-cut BDPConstruct adjusted BDPQuantify impact“Peel the Onion”in leveraged areasDevelop an action pla

27、nImplement Gather dataIdentify best practice organization for each processBDPSticky Tape-Overall Cost Position Overall,Sticky Tape is the lowest cost manufacturer.BDPSticky Tape-First-Cut BDP*Competitors B and C had no BDPsAlthough Sticky Tape is already the lowest cost manufacturer,none of its plan

28、ts is BDP in every process,and Competitor A is the BDP in packaging.BDPCompetitor APlant DPlants A and CSticky Tape$0.15$0.05$0.10$0.10$0.07$0.15$0.10$0.10$0.10$0.08$0.02$0.15$0.10$0.05$0.20$0.02$0.05$0.10BDPBDP Steps Process StepKey Success FactorsSelect comparable organizations for BDPDisaggregate

29、 organizations into major processesConstruct first-cut BDPConstruct adjusted BDPQuantify impact“Peel the Onion”in leveraged areasDevelop an action planImplementAdjust data for uncontrollable elements(e.g.,labor rates,product mix)to ensure an“apples-to-apples”comparisonBDPControllable vs.Uncontrollab

30、le Costs For analysis to be meaningful(and believable),costs must be adjusted for those that are beyond the control of operating managers.ControllableUncontrollableRaw materialscost/unitusageQualityLabor hoursOverhead staffingSpace utilizationProduct mixLabor ratesUnion-imposed costsRental ratesUtil

31、ity ratesInsuranceTaxesAccounting proceduresBDPSticky Tape-Uncontrollable Costs Different plants have different uncontrollable costs.“An unadjusted comparison is unfair.Weve got the highest labor rates in the country.”-Supervisor,Plant A“Were making masking tape over 30%of the time.That stuff rips a

32、ll the time.Let me run duct tape all day and Ill beat any plant.”-Rewinder,Plant C“Were a union shop.Our work rules create costs the other plants dont have.”-Plant manager,Plant DBDPSticky Tape-Adjusted*BDP*Adjusted for labor and utility rates and product mix*In this particular case,the overall BDP

33、does not happen to change.The components,however,do change.Adjusting for uncontrollable costs has a significant impact on the costs for each plant.BDP(adjusted)BDP(unadjusted)RewindSlitPackagePlant APlant BPlant CPlant DCompetitor A$0.15$0.05$0.05$0.07$0.10$0.15$0.10$0.05$0.07$0.07$0.15$0.18$0.10$0.

34、08$0.10$0.08$0.10$0.09$0.08$0.05$0.02$0.03$0.15$0.12$0.05$0.05$0.10$0.09$0.20$0.18$0.05$0.03$0.02$0.09$0.10$0.05BDPBDP Steps Process StepKey Success FactorsSelect comparable organizations for BDPDisaggregate organizations into major processesConstruct first-cut BDPConstruct adjusted BDPQuantify impa

35、ct“Peel the Onion”in leveraged areasDevelop an action planImplementCalculate potential impact(revenue increase or cost savings)by unit and by processBDPSticky Tape-Potential Savings Sticky Tape can save an average of$0.08 per roll,or$5.6MM overall,by implementing best practices.Rolls per year:20MM 1

36、8MM6MM27MMPotential Savings per RollPotential Total SavingsAverage potential savings =$0.08BDPSticky Tape-Backup for Potential Savings Total potential savings by plant:Total potential savings by process:Plant A savings per rollXNumber of rolls=()+Plant B savings per rollXNumber of rolls()Plant C sav

37、ings per rollXNumber of rolls()+Plant D savings per rollXNumber of rolls()+=($0.10 x 20MM)+($0.13 x 18MM)+($0.08 x 6MM)+($0.03 x 27MM)=$5.6MM=Rewind savings at each plant+Slit savings for each plant+Package savings for each plant=($0.06 x 20MM)+($0.09 x 18MM)+($0.03 x 27MM)+($0.04 x 20MM)+($0.04 x 1

38、8MM)+($0.05 x 6MM)+($0.03 x 6MM)=$5.6MM Rewind savings at each plantSlit savings for each plantPackage savings for each plant+=来自来自中国最大的资料库下载中国最大的资料库下载BDPBDP Steps Process StepKey Success FactorsSelect comparable organizations for BDPDisaggregate organizations into major processesConstruct first-cut

39、 BDPConstruct adjusted BDPQuantify impact“Peel the Onion”in leveraged areasDevelop an action planImplementFocus on organizations and processes with the most potentialDetermine drivers of differences at a more disaggregated levelBDPPriority Matrix UnattainablesBack burnerHighLowLowHighAbility to Impl

40、ementImpactQuick hitsTop priorityFocus on those areas that will yield the greatest benefits.BDPSticky Tape-Top Priorities The top priorities for Sticky Tape are plants A and B and rewinding.What do Plants C and D do differently that results in lower costs?What drives rewinding costs?Plant DPlant CPl

41、ant BPlant APackageSlitRewindBy plantBy process$5.6MM$5.6MM$0.0$2.0$4.0$6.0Potential Annual Savings($MM)Potential Total SavingsBDPSticky Tape-Rewinding Costs*Utilities,occupancy,supplies,supervisionPlant C is the BDP in rewinding labor and rewinding raw materials,plant D in rewinding overhead.Plant

42、DPlant CPlant CBDPSticky Tape-Drivers of Rewinding Costs The Bain team determined the drivers of rewinding costs in order to suggest concrete action steps:Run timeMaster roll load/unloadCore load/unloadFirst qualityDefectsEase of moving spools of tape around the roomEase of loading and unloading spo

43、ols of tapeTape tearsAdhesive runsSuggest concrete action stepsLaborRaw materialsOverheadRewindingBDPBDP Steps Process StepKey Success FactorsSelect comparable organizations for BDPDisaggregate organizations into major processesConstruct first-cut BDPConstruct adjusted BDPQuantify impact“Peel the On

44、ion”in leveraged areasDevelop an action planImplementSet a BDP targetEstablish a detailed scheduleAssign responsibilitiesBDPSticky Tape-Action Plan Buy larger internal diameter cores to slide more easily into placeMove rewinding room walls to provide greater clearance for loading/unloadingUse lower

45、core bins to make core storage easierReduce tension to 122 to reduce tape tearsInstall air conditioning system to reduce adhesive runsCost-$72K$17K-$130K+$40K per yearAverage Savings/Master Roll$16$10$4$28$22Annual Savings$0.8MM$0.5MM$0.2MM$1.4MM$1.1MMTimingThree months to draw down inventoryTwo mon

46、thsfor constructionNowNowThree months for installationResponsibilityPurchasingPlant managerLine supervisorLine supervisorTechnical managerDeveloping an action plan involved setting targets,establishing a schedule,and assigning responsibilities.BDPBDP Steps Process StepKey Success FactorsSelect compa

47、rable organizations for BDPDisaggregate organizations into major processesConstruct first-cut BDPConstruct adjusted BDPQuantify impact“Peel the Onion”in leveraged areasDevelop an action planImplementObtain commitment at all levels of the organizationCommunicate goals,deadlines and responsibilitiesCe

48、lebrate successes along the wayBDPSticky Tape-Implementation Successful implementation involves obtaining commitment at all levels of the client organization;communicating clearly about goals,deadlines,and responsibilities;and celebrating achievements made in reaching goals.CommitmentMorale boosting

49、At senior management levelAt operating management levelAt operating non-management levelAnnouncements as milestones are reachedA running tally of cost savingsRewards for superior achievementsCommunicationGoalsDeadlinesResponsibilitiesBDPSticky Tape-Lessons Learned Companies that are BDPs in an aggre

50、gate view are not necessarily BDPs in everythingThey can often learn from examining their own operations as well as othersIt is necessary to disaggregate cost elements(“Peel the Onion”)and get down to cost drivers to determine appropriate action stepsAction steps must be agreed upon and committed to